ITV `could cut 500 posts'

BELEAGUERED broadcaster ITV is expected to unveil cost savings and measures to improve its balance sheet in its finals on Wednesday. Both ITV and Five are expected to announce plans to cut up to 600 jobs, according to reports.

BELEAGUERED broadcaster ITV is expected to unveil cost savings and measures to improve its balance sheet in its finals on Wednesday.

Both ITV and Five are expected to announce plans to cut up to 600 jobs, according to reports.

ITV is expected to unveil plans to axe up to 500 posts when it reports on Wednesday, while Five is understood to be planning to make 100 job cuts as part of restructuring plans being outlined on Thursday.

The headcount reduction at Five, which is being made due to a tighter budget, would represent nearly a third of its 350 staff.

ITV was recently said to be considering selling networking site Friends Reunited , which it bought for £175m in 2005 but may now be worth as little as £50m. The broadcaster is also said to be considering its future ownership of SDN , which rents Freeview capacity to channels including Five and QVC and could also be on the block, with a value in the region of £200m.

Executive chairman Michael Grade is under pressure to dispose of assets as the economic downturn takes its toll on advertising revenues.

As well as disposals, ITV may ask shareholders for £300m in a rights issue. ITV staff are also braced for a new round of job losses, while the company's ringfenced programme budget is likely to be trimmed by five per cent.

The broadcaster is reportedly facing a 20 per cent drop in advertising revenues for the first three months of this year, with March down by as much as 30 per cent.

Numis analyst Paul Richards said: "We expect a grim set of results, reflecting the deterioration in the advertising environment since the autumn."

He forecast pre-tax profits of £150m, against a consensus of around £140m, compared with £281m the previous year.